NEW DELHI: Prime Minister Narendra Modi on Sunday underlined the need to modernise India’s defence sector in response to evolving global challenges, asserting that higher defence allocations are part of a sustained national effort rather than a reaction to any single development. He also urged the private sector to respond decisively to reforms and ensure that growth benefits workers as well as shareholders.
In an interview with PTI, PM Modi said the government has been clear from the outset about strengthening the armed forces. “Since Day 1, our government has been clear that we will do whatever it takes to support our defence forces and enhance their capabilities. Yes, this year’s allocation is a record high, but seen in isolation it offers only a limited perspective,” he said.
Highlighting the rapid pace of technological change, the Prime Minister stressed that India’s armed forces must be equipped with cutting-edge domestic innovation. “As technology reshapes the world, our armed forces must be backed by the best of Indian industry and innovation. As a country playing an increasingly significant role globally, we have a duty to modernise our defence sector in line with current realities,” he said.
His remarks come amid a shifting global order marked by strategic competition between major powers such as the US and China, ongoing conflicts in Ukraine and West Asia, and persistent tensions in India’s neighbourhood. The growing importance of cyber capabilities and advanced technologies has added new dimensions to security preparedness.
Referring to Operation Sindoor, the Prime Minister said the mission demonstrated India’s growing familiarity with technology-driven warfare and reflected the impact of reforms undertaken over the past decade. “The entire nation is proud of the courage shown by our armed forces during Operation Sindoor. One could see the benefits of the reforms introduced in recent years. Defence budgets and modernisation efforts are part of a continuous process and should not be linked to any particular issue. Our nation must remain strong and prepared at all times, and that is what we are doing,” he said.
On the economic front, PM Modi described recent trade agreements as an integral part of India’s deeper integration with the global economy. He said pacts with partners ranging from the UK to the European Union have been under negotiation for years and will help Indian producers diversify markets while creating opportunities for service professionals.
“These agreements are significant not just for tariff reductions but for supply-chain integration and expanded access to advanced markets,” he said. According to the Prime Minister, the deals will gradually lower manufacturing tariffs, deepen services integration and open new avenues for labour-intensive exports such as textiles, footwear, electronics and engineering goods. “They support structural transformation rather than merely boosting headline trade figures,” he added.
He also noted that free trade agreements help anchor domestic reform to external commitments, reduce tariff disadvantages vis-à-vis competitors and integrate Indian firms more deeply into global value chains.
Calling for a “decisive response” from industry, PM Modi urged companies to invest more aggressively in research and development, adopt frontier technologies and strengthen supply-chain capabilities. “Competitiveness must rest on innovation, efficiency and scale, not on protected margins,” he said.
At the same time, he emphasised that productivity gains must be shared fairly. “As productivity rises, the benefits must be equitably distributed among workers, shareholders and owner-managers. Sustainable growth requires social legitimacy. Rising real wages, skill development and stable employment reinforce domestic demand and social cohesion, which in turn support long-term investment,” he said.
Responding to questions about the Union Budget’s focus on women, the Prime Minister said women’s welfare guides every government decision. He described it as a matter of national pride that Finance Minister Nirmala Sitharaman has presented the Budget nine consecutive times, inspiring women across the country.
Among key initiatives, he highlighted the announcement of hostels aimed at supporting female students. “Many girls drop out not due to lack of talent but because long commutes to laboratories and late study hours pose difficulties. This intervention directly addresses that constraint,” he said.
He also pointed to measures for training allied health professionals, which are expected to benefit women significantly. “Women have traditionally been central to caregiving, but largely in the informal sector. By training 1.5 lakh caregivers next year and expanding institutions for allied health professionals, with a target of one lakh trained over five years, we are formalising care work at scale,” he said. This, he added, would create dignified, certified employment for women while strengthening India’s healthcare capacity.
